The property market in India has been hard hit by the global economic downturn but China is showing more resilience according to the Royal Institution of Chartered Surveyors (RICS) Global Commercial Property Survey.

India has experienced a significant commercial property downturn in Q3 2008. Rising interest rates, higher inflation and a continuing lack of liquidity is impacting significantly on business confidence.

The balance of surveyors that reported investor purchases plummeted from a flat zero balance to -73. However, commercial property in China has, to date, remained relatively firm in the face of a global economic downturn. Most of the Chinese indicators remain in positive territory, with both supply and demand holding up and expectations generally upbeat. Some 14% more chartered surveyors expect an increase in floor space to be let and sold throughout China in the coming months while 18% more surveyors are reporting a rise in capital values

There is little good news from the US where the property market continues to suffer from a lack of liquidity. The proportion of surveyors reporting falls in pipeline developments has jumped from 48% to 79%.

Simon Rubinsohn, RICS chief economist, said: “The worsening economic climate is taking its toll on the commercial property markets in most parts of the world and the credit crunch has now extended its grip into emerging markets. Large interest rate cuts by central banks should eventually provide some support. However, with liquidity still tight and tenant demand softening further pressure on the commercial sector is inevitable in the near term.”